Is it time to consider buying Marriott International, Inc. (NASDAQ: MAR)?

(NASDAQ:MAR) has received a lot of attention due to the substantial price increase on the NASDAQGS in recent months. The company’s trading levels reached last year’s high following the recent share price rally. With many analysts covering the large-cap stocks, we can expect that any price-sensitive announcements have already been factored into the stock price. However, could shares still be trading at a relatively cheap price? Today we will analyze the latest data on Marriott International’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for Marriott International

How much is Marriott International worth?

The shares appear fairly valued at the moment according to our valuation model. It’s trading about 13% below our intrinsic value, which means if you buy Marriott International today, you’ll be paying a reasonable price for it. And if you believe the stock is actually worth $301.78, then there isn’t much room for the stock price to grow beyond what it’s currently trading. Although there may be a buying opportunity in the future. This is because Marriott International’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall more than the rest of the market, providing an excellent buying opportunity.

What will the future of Marriott International look like?

Investors looking for growth in their portfolio may want to consider a company’s prospects before purchasing its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to grow by double digits of 17% in the coming years, the outlook is positive for Marriott International. It appears that higher cash flow is forecast for the stock, which should contribute to a higher share valuation.

What does this mean for you

Are you a shareholder? It appears the market has already priced in MAR’s positive outlook, with shares trading around its fair value. However, there are also other important factors that we do not consider today, such as the financial strength of the company. Have these factors changed since you last looked at the stock? Will you have enough confidence to invest in the company if the price falls below its fair value?

Are you a potential investor? If you have been keeping an eye on MAR, now may not be the ideal time to buy as it is trading around its fair value. However, the optimistic outlook is encouraging for the company, which means it’s worth taking a closer look at other factors, such as the strength of its balance sheet, to take advantage of the next price drop.

Therefore, if you want to do more analysis about the company, it is essential to be informed about the risks involved. For example, we discovered 1 warning sign that you should check out to get a better view of Marriott International.

If you are no longer interested in Marriott International, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to bring you long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St has no position in any of the stocks mentioned.